News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
USD/JPY Spikes After ISM Manufacturing Data Surpasses Expectations

USD/JPY Spikes After ISM Manufacturing Data Surpasses Expectations

2017-01-03 15:50:00
Diego Colman, Market Analyst
Share:

Talking Points:

- US ISM Manufacturing rises to 54.7 from 53.2 versus 53.8 expected.

- USD/JPY spikes after ISM Manufacturing data beats market consensus.

- Check out the DailyFX economic data calendar for market moving releases in the upcoming days.

U.S. factory output continued its positive trend and expanded for the fourth consecutive month after a sub-zero print in August a survey by the Institute of Supply Management showed earlier today.

The latest ISM Manufacturing Index increased to 54.7 from 53.2 in the previous month suggesting that the factory sector continues to stabilize after a prolonged slump and despite renewed dollar strength that ensued the U.S. Presidential Election. As a reminder, a print above 50 in the ISM Index signals expansion in the manufacturing economy whereas a reading below 50 indicates contraction. Analysts polled by Bloomberg News had expected the ISM Index to hit 53.8.

The component breakdown showed that New Order accelerated to 60.2 from 53.0 while Production jumped to 60.3 from 56 in November. Meanwhile, employment ticked up to 53.1 from 52.3 pointing to a pick-up in hiring which will likely lead to further tightening in the labor market. At the same time, new order exports rose to 56 from 52, a sign that external demand may be gaining some momentum.

It is important to note that even as factory activity continues to improve, the recent dollar appreciation may prove to be problematic for US manufacturers and may represent a headwind for the sector over time as a strong currency curtails external demand.

Here is a summary of the US data:

- USD ISM Manufacturing (DEC): 54.7 versus 53.8 expected, from 53.2.

- USD ISM Prices Paid (DEC): 65.5 versus 55.5 expected, from 54.5.

- USD ISM New Orders (DEC): 60.2 from 53.

- USD ISM Employment (DEC): 53.1 from 52.3.

Chart 1: USD/JPY 1-minute Chart (January 3, 2017 Intraday)

USD/JPY Spikes After ISM Manufacturing Data Surpasses Expectations

Immediately after the data, USD/JPY extended its daily advance rising from 118.139 to 118.60 or 0.75% for the day, as the report could provide ammunition to policy makers to continue tightening monetary policy in 2017 with the US economic recovery well on course.

Read more: US Dollar Starts Off the New Year with a Bang

--- Written by Diego Colman, DailyFX Research

For questions or comments, e-mail feedback@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES